Saturday, November 12, 2011
I need some help on a statistic question. I don't think it is very difficult, just don't know where to begin?
A manufacturer is testing a new model of a machine. The old model produced one hundred units per day with a standard deviation of ten. The manufacturer records the production levels with the new model in sixty-eight different days and finds that the sample variance is sixty-four. Can the manufacturer be ninety-nine percent sure that the new model is more reliable than the old one (lower variance) or is the result with the new machine in the confidence interval of the old model?
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